Government warns of potential impact on the franc should Greece fail to reach a debt deal

ZURICH—The Swiss government trimmed its economic growth forecast for this year as the strong franc curbs exports, and warned of the potential impact on its currency should Greece fail to reach a deal with its European creditors.

The effect of the Swiss National Bank’s January decision to repeal its cap for the franc has worsened the outlook for the economy, which will remain “vulnerable” to foreign exchange movements, the State Secretariat for Economic Affairs, or Seco, said Tuesday.